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Full-Text Articles in Finance and Financial Management
Corruption In Bank Lending: The Role Of Timely Loan Loss Provisioning, B Atkins, Y Dou, Jeffrey Tee Yong Ng
Corruption In Bank Lending: The Role Of Timely Loan Loss Provisioning, B Atkins, Y Dou, Jeffrey Tee Yong Ng
Research Collection School Of Accountancy
Building on the recent literature on corruption in bank lending, we examine the effect of country-level timely loan loss provisioning by banks on such corruption using a unique World Bankdataset that covers more than 3,600 firms across 44 countries. We find evidence consistent with timely loan loss provisions constraining lending corruption because it increases the likelihood of problem loans being uncovered earlier. This result is robust to using the tax-deductibility of loan loss provisions as an instrumental variable. In further analysis, we find timely loan loss provisioning less associated with reduced corruption in countries with deposit insurance schemes and significant …
Market Pricing Of Banks’ Fair Value Assets Reported Under Sfas 157 Since The 2008 Financial Crisis, Beng Wee Goh, Dan Li, Jeffrey Ng, Keng Kevin Ow Yong
Market Pricing Of Banks’ Fair Value Assets Reported Under Sfas 157 Since The 2008 Financial Crisis, Beng Wee Goh, Dan Li, Jeffrey Ng, Keng Kevin Ow Yong
Research Collection School Of Accountancy
We investigate how investors price the fair value estimates of assets as required by Statement of Financial Accounting Standards No. 157 (SFAS 157) since the financial crisis in 2008. We observe that Level 3 fair value estimates are typically priced lower than Level 1 and Level 2 fair value estimates between 2008 and 2011. However, the difference between the pricing of the different estimates reduces over time, suggesting that as market conditions stabilize in the aftermath of the 2008 financial crisis, reliability concerns about Level 3 estimates dissipated to some extent. Next, we examine whether Level 3 gains affect the …